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ASTROTECH REPORTS FISCAL YEAR 2017 FINANCIAL RESULTS
Austin, Texas, September 18, 2017 – Astrotech Corporation (NASDAQ: ASTC) reported its financial results for the fourth quarter and fiscal year ended June 30, 2017.
Thomas B. Pickens III, Chairman and CEO of Astrotech Corporation, stated, “Fiscal 2017 was an extraordinary year in terms of product development at both 1st Detect and Astral Images. At 1st Detect, along with our partner, we delivered an instrument to the Transportation and Security Administration (TSA). By incorporating mass spectrometry (MS) into explosives trace detectors (ETDs), we expect to significantly reduce the number of false positives, as well as enable a more expansive library of compounds compared to the current generation of ETDs.
“1st Detect also developed the BreathDetect 1000, an instrument that uses our core technology to analyze human breath in real time. In collaboration with UT Health San Antonio, we entered pre-clinical trials with cystic fibrosis patients, focusing on identifying hospital-acquired pneumonia (HAP). HAP is one of the biggest and most expensive problems in hospitals, with over 150,000 cases reported in the U.S. annually. In June, we announced successful preliminary results from these pre-clinical trials. We aim to reduce HAP diagnosis time from days to minutes.
“At Astral Images, we are positioned to lead the digital conversion from High Definition resolution (2K HD) to 4K resolution with High Dynamic Range (4K HDR) for feature films, film-based television series, sporting events shot on film, film libraries, and archives. Astral offers content owners a significant value proposition by dramatically reducing the cost and time required to upgrade to the new 4K standard. Several major film studios have provided excellent feedback on our technology, and we expect 4K HDR conversions to accelerate in parallel with consumer demand for high-quality content as 4K HDR televisions become ubiquitous.”
Regarding Astrotech Corporation, in May, management announced that it engaged Chardan Capital Markets to explore strategic alternatives regarding 1st Detect; these discussions are ongoing. From a financial perspective, gross profit more than doubled year-over-year. Combined with the effective corporate realignment and decreased operating expenses, the company’s fiscal 2017 bottom line improved $1.5 million compared to the previous year.”
Mr. Pickens concluded, “Our technology continues to be validated by industry leaders. We are committed to innovation and, in particular, we are focused on furthering product development with the goal of expediting our time to market. Overall, we are excited about our ongoing improvements and opportunities in fiscal 2018.”
Fiscal Year Financial Highlights
Revenue, costs of goods sold, SG&A, and R&D are expected to continue to fluctuate based on the timing of contract revenue.
Revenue was $2.3 million for the year ended June 30, 2017, reflecting 1st Detect's income from research-based, fixed-price, government-related subcontracts. This is compared to $2.7 million for the year ended June 30, 2016, which included revenue of $0.2 million associated with revenue from a legacy business.
Gross profit was $1.0 million for the year ended June 30, 2017, compared to $0.3 million for the year ended June 30, 2016, due to lower prototype costs.
The July 2016 corporate realignment saved approximately $3.7 million for fiscal year 2017, $0.2 million better than originally anticipated.
The following information was filed by Astrotech Corp (ASTC) on Monday, September 18, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.